Commercial Upgrade

Embargoed Release: 07:00hrs Thursday 24 January 2008

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

                              Commercial Upgrade                               
                                      and                                      
            Grid Qualification of World's First HTS Hydro-Generator            

Zenergy Power plc (AIM:ZEN.L), the specialist manufacturer and developer of
commercial applications for high-temperature superconductive (`HTS') materials,
is pleased to announce the following update on its groundbreaking project to
build and install the world's first HTS hydro-generator into a commercially
operating hydroelectric power station.

On 23 October 2006, Zenergy announced that E.ON Wasserkraft GmbH ('E.ON-WK')
would install an HTS hydro-generator powered by Zenergy's proprietary HTS
technology. Today, the Group is pleased to announce that E.ON-WK has now
informed Zenergy of its desire to upgrade the HTS hydro-generator (which is
currently under development for use at its hydro-electric power station in
Bavaria, Germany) - on fully commercial terms - from its current electrical
capacity of 1.25 MW to that of 1.7 MW. In conjunction with the installation,
E.ON-WK will also undertake at their own cost to replace the stations' existing
turbines with ones incorporating higher capacity blades specifically to drive
the newly installed and upgraded HTS generator.

Accordingly, what began as an R&D project has quickly developed into a
significant commercial prospect for the Group.

Further, and following the outcome of an independent third party technical
evaluation, E.ON-WK has also informed Zenergy that it wishes to promote the
upgraded HTS generator to be the hydropower station's 'pole position'
generator. As a result, the generator will now be responsible not just for
additional power during peak usage but for the provision of the ongoing 'base
load' supply of electrical power to over 3,000 homes in the local area. As
Germany's largest producer of hydro-electric power, E.ON-WK currently produces
more than 10 billion kilowatt hours of hydro-electric power per annum.

Hydropower is currently the largest and most mature source of renewable energy
and contributes to the production of about 19% of electricity worldwide. On a
global basis hydropower is averting the emission of some 808 million tonnes of
CO2 every year. Since generators based on HTS technology can deliver energy at
considerably higher efficiencies than existing copper generators, it is
estimated that the retrofitting of HTS generators will enable utility companies
to generate a further 14 GW of energy `for free' (and without any further
environmental impact) from their existing hydro-damn structures. This is
equivalent to the energy produced by approximately 40 conventional power
stations, the construction of which could accordingly be deferred through the
use of efficient HTS technology; representing a significant contribution to the
Kyoto-protocol targets.

The decision by a major utility company of E.ON-WK's standing to use the
world's first HTS generator as the `base load' generator in a commercial power
station is considered by the Board to be indicative of two major endorsements
for the Group and its technology. The first, which is demonstrated by E.ON WK's
confidence in the electrical performance of the HTS generator, is the
endorsement of the significant level of engineering progress that has been
achieved by the Group within the ongoing project. The second, which is
demonstrated by E.ON WK's commitment to fund the upgrade on fully commercial
terms, is the endorsement of the real commercial appeal of the HTS generators
to major utility companies seeking to benefit from the superior economic
efficiencies brought to the production of renewable energy by the generators'
underlying HTS technology.

E.ON-WK took the decision to upgrade the generator to the stations `pole
position' following the outcome of extensive electrical stability analysis
conducted by Kema Nederland B.V. (`Kema'), which deemed the HTS generator
design to be compliant with electricity grid codes and suitably engineered to
meet the operational demands of major utility companies. Kema is a specialist
organisation that provides high-grade technical consultancy and enjoys a
world-wide reputation for its KEMA-KEUR certification for industrial electrical
equipment. Kema was commissioned by E.ON-WK to carry out electrical and
engineering evaluations of the HTS generator and found there to be a number of
technical merits to the design which - further to the efficiency advantages
over traditional copper-based generators - make the HTS generator highly
suitable for handling the complex demands of retrofit installations.

The Board considers E.ON-WK's decision and commitment of further funds to the
project as indicative of the need and desire of major utilities to improve the
economic return on the production of renewable energy. Furthermore, it regards
the expansion of the project as a significant validation of the impact that
Zenergy's highly energy efficient materials can have on improving the economies
of energy production and conversion. The ground breaking generator is being
built by Converteam (Formerly ALSTOM Power Conversion) utilizing the Group's
superconductive core components.

Ulrich Fuchs, Head of Electrical Engineering, E.ON-WK, commented:

'It is with great pleasure that we are able to extend into the use of
superconductive generators in this manner. To date, our ongoing technical
evaluations have demonstrated the potential of Zenergy's materials and
components to improve the efficiency of our renewable energy operations.
Furthermore, we recognise that these improved efficiencies would lead to
substantial improvements in the economic return from our continuing production
activities.

The exceptional benefits offered by Zenergy's technology have the potential to
pave the way for a new generation of electrical equipment that, whilst being
significantly smaller than conventional generators, has proven itself capable
of producing increased levels of electrical power, and in a manner that
contributes to the overall level of stability of our grid operations. We are
very proud to be the first utility in the world to adopt superconductive
materials in this way and very much look forward to continuing the evaluation
of their capabilities.'

Michael Fitzgerald, Non-Executive Chairman, commented:

`When we conceived the HTS coils for the original 1.2 MW generator for E.ON-WK
I was delighted at the acceptance from one of the world's largest energy
suppliers that our products could significantly improve the economic return on
their ongoing renewable energy production.

This commercial upgrade displays a genuine determination by E.ON-WK to improve
the efficiency of their renewable energy production and is a resounding
endorsement of the readiness of our products to deliver the ideal technical
solution to achieve that.

I am thrilled that a utility of such significance as E.ON-WK has chosen not
merely to commercialise an HTS hydro-generator, but to make it the key
generator in the station.

I am particularly excited that Zenergy is now able to boast the first
commercialisation of two major industrial applications for HTS products in two
different global markets. Our ability to establish commercial traction for our
energy efficient technology in two separate markets in such rapid succession
speaks volumes for the economic and environmental benefits we can deliver to
our existing and future customers. '

                                    -Ends-                                     

                             www.zenergypower.com                              

        www.australiansc.com / www.scpowersystems.com / www.trithor.com        

                                    -Ends-                                     

Further information:

Dr. Jens Müller                 Zenergy Power Plc        + 49 22 26 90 60 200
                                                                             
Andrew Tan                      Hansard Group            + 44 207 245 1100   
                                                                             
Tom Hulme                       Landsbanki Securities    + 44 207 426 9000   
                                (UK) Limited                                 

About Zenergy Power plc

Zenergy Power plc is a global specialist manufacturer and developer of
commercial applications for superconductive materials. Comprising three
operating subsidiaries located in Germany (Trithor), USA (SC Power Systems) and
Australia (Australian Superconductors), Zenergy is highly focussed on the
commercialisation of a number of energy efficient applications to be adopted in
renewable energy power generation, energy distribution and large scale, energy
intensive industrial processes and achieved the world's first commercial sale
of an industrial scale HTS device in September 2007.

About superconductivity

Superconductive materials are capable of conducting electricity without any
resistance and were first discovered in 1911 in what was to prove to be one of
the most significant scientific breakthroughs of the 20th century.

The global HTS market is substantial and growing, with a number of market
studies projecting multi-billion dollar markets for the application of HTS
materials and products. The proliferation of the use of superconductor
materials is largely being driven by the following key factors:

(a) HTS materials are highly complementary to energy efficient technologies as
a substitute for copper

(b) HTS wires have power densities of over 100x that of copper

(c) Current developments are leading to substantially reduced costs in the
production of HTS wires and are targeting to be cheaper than copper over the
next few years.

(d) HTS applications deliver exceptional energy efficiencies and thus reduced
power consumption and running costs

(e) HTS technology is set to play a significant role in reducing CO2 emissions
in line with international targets

(f) HTS applications are capable of delivering vastly increased levels of power
with increased reliability and reduced material usage